United States president cheers new USMCA trade deal, heralds end of NAFTA era

Duty free limit rises to $150 for cross border shoppers under new trade deal

The U.S. -Mexico-Canada agreement that will succeed NAFTA includes the elimination of Canada's Class 7 dairy price system and greater U.S. access to the Canadian dairy market than offered in the TPP free trade agreement, said senior administration officials late Sunday.

Despite Trump's rhetoric, the new agreement keeps the framework of NAFTA largely intact, maintaining the status quo of free trade between the three countries.

"Anything you submit to Congress is trouble no matter what", Trump said, predicting that Democrats would say, "Trump likes it so we're not going to approve it".

"It'll probably or possibly be just USM". When a reporter suggested he seemed confident of approval after his announcement, he said he was "not at all confident" - but not because of the deal's merits or defects. Trudeau is a "good man" who loves Canada, Trump said.

The president has admitted there was "a lot of tension" but said it didn't affect negotiations.

USA officials intend to sign the agreement at the end of November, after which it will be submitted to congress for approval, a United States official said.

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Washington and Ottawa immediately began negotiations that culminated in a deal just before midnight on September 30. Kushner played a similar role with Mexico - in that case, his close relationship was with Luis Videgeray, the Mexican foreign secretary, helped propel those talks to fruition.

The Canadian source said Canada had agreed to a cap on its automotive exports to the United States in the event that the Trump administration imposes global autos tariffs on national security grounds.

The pact preserved a key trade dispute settlement mechanism sought by Canada even as Ottawa agreed to open up its dairy markets to USA farmers.

In another tweet, Mr. Trump said the new agreement "greatly opens markets to our Farmers and Manufacturers, reduce [s] Trade Barriers to the USA and will bring all three Great Nations closer together in competition with the rest of the world".

This will allow them to sign the agreement before Mexico's President Enrique Pena Nieto leaves office December 1, the date that was the cause of the last minute flurry of activity. The new agreement will do more than simply help the three economies generate more growth (they already trade more than $2 million a minute). "Versus a very unpredictable and protectionist US administration, I think Canada did as well as it could". -Mexico-Canada trade deal, saying President Trump "deserves praise" for trying to improve upon the old NAFTA.

The agreement ends the simmering trade standoff over NAFTA started by Trump, who had labelled the 1994 agreement the "worst trade deal ever made" as part of his pitch to become president.

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Canada's ambassador to Washington says the USA and Canada have made a lot of progress in free trade talks but there is no deal.

On the matter of Section 232 tariffs, Trump's trade weapon of choice, USA officials told a late-night conference call with reporters that the two sides had "reached an accommodation" on the issue.

Trump has been pushing for a complete overhaul of the agreement which he says has been a "rip-off" for the United States.

The senior administration officials announced agreement on the USMCA an hour before the USA -imposed deadline for a deal.

He sent his "highest regards" to Trudeau, and said that the new deal has created a great partnership with Mexico and Canada.

On the flip side of Canada's more open dairy market, the country's own farmers may be negatively affected. "That's the motherlode, that's the big one", the president threatened, as he slammed the state of negotiations and Canadians trade negotiators. Canada is by far the No. 1 destination for US exports, and the USA market accounts for 75 percent of what Canada sells overseas.

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